Family Dollar committed to Dollar Tree deal - for now

As financial analysts swooned over Dollar General Corp.'s $9.7 billion cash offer for Family Dollar Stores on Monday, the board of directors of Family Dollar agreed to "carefully review and consider the proposal."

But Family Dollar "remains subject to the merger agreement" it signed with Dollar Tree Inc. on July 28 and its board "has not changed its recommendation in support" of the $8.5 billion cash and stock offer from Dollar Tree, Family Dollar said in a statement late Monday.

Still, Dollar General believes it clearly has the superior offer on the table, said Mary Winn Pilkington, the Goodlettsville-based retailer's vice president of investor and public relations.

"When you think about Dollar General and the journey we've been on since 2008, it's clear that we have the playbook, management team and track record of success," she said.

Whether Dollar Tree would make a counteroffer and spark a bidding war for Family Dollar is "hard to speculate," Pilkington said. "Our No. 1 goal is to get to a point where we can have constructive discussions with Family Dollar and work it out from there.

"We provided what we view as a superior valuation to Family Dollar shareholders, and it gives them all-cash certainty," she said. "There are clear strategic benefits to Dollar General shareholders as well."